{"data":{"id":"us-ky/krs-198a.090","jurisdiction":"us-ky","citation":"KRS 198A.090","heading":"Corporate authorization and operation of revenue bond financing --","body":"Approval of General Assembly required for certain bond or note issuances.\n(1) Except as provided in subsection (6) of this section, the corporation may provide for\nthe issuance, at one (1) time or from time to time, of bonds of the corporation if the\ncumulative outstanding indebtedness of the corporation's bonds does not exceed\nfive billion dollars ($5,000,000,000), in order to carry out and effectuate its\ncorporate purposes and powers.\n(2) In anticipation of the issuance of bonds, the corporation may provide for the\nissuance, at one (1) time or from time to time, of bond anticipation notes. The\nprincipal of and the interest on the bonds or notes shall be payable solely from the\nfunds provided for the payment. Notes may be made payable from the proceeds of\nbonds or renewal notes or, if bond or renewal note proceeds are not available, notes\nmay be paid from any available revenues or assets of the corporation.\n(3) The bonds or notes of each issue shall be dated and may be made redeemable before\nmaturity at the option of the corporation at a price and under terms and conditions\ndetermined by the corporation. Bonds or notes shall bear interest at a rate\ndetermined by the corporation. Notes sh all mature at a time not exceeding ten (10)\nyears from their date and bonds shall mature at a time not exceeding forty (40) years\nfrom their date, as determined by the corporation. The corporation shall determine\nthe form and manner of execution of the bon ds or notes, including any interest\ncoupons to be attached thereto, and shall fix the denomination and the place of\npayment of principal and interest, which may be any bank or trust company within\nor without the Commonwealth. If an officer whose signature or a facsimile of\nwhose signature appears on any bonds, notes, or coupons attached to them shall\ncease to be an officer before the delivery thereof, the signature or facsimile shall be\nvalid and sufficient for all purposes as if he had remained in office u ntil delivery.\nThe corporation may provide for the authentication of the bonds or notes by a\ntrustee or fiscal agent. The bonds or notes may be issued in coupon or in registered\nform, or both, as the corporation may determine, and provision may be made for the\nregistration of any coupon bonds or notes as to principal alone and also as to both\nprincipal and interest, and for the reconversion into coupon bonds or notes of any\nbonds or notes registered as to both principal and interest, and for the interchange of\nregistered and coupon bonds or notes. Upon the approval of a resolution of the\ncorporation, authorizing the sale of its bonds or notes, the bonds or notes may be\nsold in a manner, either at public or private sale, and for a price the corporation\nshall determine to be for the best interest of the corporation and best effectuate the\npurposes of this chapter, if the sale is approved by the corporation.\n(4) The proceeds of any bonds or notes shall be used solely for the purposes for which\nthey are issued an d shall be disbursed in the manner and under the restrictions, if\nany, the corporation may provide in the resolution authorizing the issuance of bonds\nor notes or in the trust agreement securing the same.\n(5) Prior to the preparation of definitive bonds, t he corporation may, under like\nrestrictions, issue interim receipts or temporary bonds, with or without coupons,\nexchangeable for definitive bonds when the bonds have been executed and are\navailable for delivery. The corporation may also provide for the re placement of any\nbonds or notes which become mutilated, destroyed, or lost.\n(6) (a) Prior to the issuance of any bonds or notes that are not secured by:\n1. Direct obligations or obligations guaranteed by the United States of\nAmerica; or\n2. Obligations of f ederal agencies to the extent that the obligations are\nbacked by the full faith and credit of the United States of America; or\n3. Repurchase agreements with any primary dealer in securities fully\nsecured by obligations described in subparagraphs 1. and 2. of this\nparagraph if the market value of the security is maintained at one\nhundred three percent (103%) of the principal amount of the repurchase\nagreement and the security is held by an independent third -party\ncustodian financial institution; or\n4. Insured or guaranteed construction loans or mortgage loans as defined\nby KRS 198A.010(10) and (11); or\n5. Guaranty insurance policies which guarantee payment of the principal\nand interest on the bonds issued by a nationally recognized entity\nauthorized to issue guarantees and rated in the highest rating category by\nat least one (1) of the nationally recognized rating services;\nthe corporation shall obtain the approval of the issuance from the General\nAssembly in accordance with the provisions of KRS 56.870(1), u nless the\nprovisions of paragraph (b) of this subsection apply. This requirement shall\nnot apply to refunding bond or note issues which are for the purpose of\nachieving debt service savings and which do not extend the term of the\nrefunded bonds or notes.\n(b) The corporation may provide for the issuance, at any one (1) time or from\ntime to time, of bonds which do not satisfy the requirements of paragraph (a)\nof this subsection without approval of the issuance by the General Assembly if\nthe cumulative outstanding indebtedness of the corporation that does not meet\nthe requirements of paragraph (a) of this subsection does not exceed thirty\nmillion dollars ($30,000,000).\n(c) The corporation shall annually report on its housing and bonding programs to\nthe Interim Joint Committee on Appropriations and Revenue.\n(7) The Finance and Administration Cabinet shall provide to the corporation fiscal\nconsultant services regarding revenue bond management as necessary.","path":["KRS Chapter 198A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=39484","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:50Z","sha256":"fafe332752aec68e5274de872a35ad6f5d10f7c834e7acb1fda995badbbe9cde","source_id":"us-ky","stale":false,"prev":"us-ky/krs-198a.080","next":"us-ky/krs-198a.100"},"notice":"GroundRules: Original legal text. Not legal advice."}